MULTI FACILITY ECONOMIC ZONES IN ZAMBIA 1. Background The Zambian government through the enactment of the Zambia Development Agency Act No. 11 of 2006, among other initiatives, sanctioned the establishment of Multi Facility Economic Zones (MFEZs) in Zambia with the objective of catalyzing industrial and economic development in the manufacturing sector for the purpose of enhancing both domestic and export oriented business. The manufacturing sector in Zambia has for the past two decades, generally performed below expectations, Zambia has numerous natural resources and agricultural raw materials most of which are exported in raw form with little value addition due to low investment in the manufacturing sector. Signs of recovery in the sector have however been evidenced in the last 10 years as a result of a number of factors that include an increase in the copper prices that has lead to growth in mining activities and the stepped up effort by Government to increase non-traditional exports. The introduction of Multi Facility Economic Zones is therefore a policy identified by Government to contribute positively to the growth of the manufacturing sector in Zambia. The MFEZs will provide an environment that is competitive enough for a manufacturer to process within the borders of Zambia with relative ease. The MFEZs are designed to make Zambia a centre of excellence in economic development in the region through increased activity in the manufacturing sector. In addition, Zambia’s membership to various regional and international organisations such as World Trade Organisation (WTO), Common Market for Eastern and Southern Africa (COMESA), Southern Africa Development Community (SADC) and various market access agreements provide ready markets for export of value–added manufactured products, hence increasing the country’s foreign exchange earnings. It is envisaged that the incentives that will be availed to the MFEZ businesses will lead to the reduction in production costs that will result in enhanced competitiveness and quality delive
|
